Hasbro Stock Down After Analysts Criticize Handling of Magic: The Gathering
Hasbro’s stock dropped nearly 10% today after analysts said the company was mismanaging its Magic: The Gathering trading card game business.
according to CNBC.
As of this writing, Hasbro shares are at $57.52, down from Friday’s close of $63.41. According to a note from Bank of America analysts ( financial times), the analyst said from conversations with players, collectors, distributors, and local game stores, “The main concern is that Hasbro’s recent performance is underpinning but destroying the long-term value of the brand. It’s over-producing magic cards that cost money.”
Analysts say Magic experienced significant growth during the peak of the pandemic, with secondary prices soaring. Hasbro has chosen to keep the momentum going by releasing sets more frequently. This has caused secondary market prices to plummet. Recent Magic: The Gathering sets have continued to drop in value, and Hasbro’s continued reissues of the sets have further slashed prices.
A famous example is the powerful Black Lotus card. This rare card sold for over $500,000 at auction in 2021. Now, Wizards of the Coast and Hasbro have reprinted the card for the first time in over 25 years, causing panic among collectors who fear that the rare card will lose value due to duplication. .
However, you can’t go to the store and buy Black Lotus. The set will launch on his November 28th, and his 4 booster packs with random cards will cost $999.
Players can get lucky and draw a Black Lotus, but it’s quite possible that they’ll spend nearly $1,000 and get nothing. Wizards of the Coast had previously promised to never reprint Black Lotus, and it seems they’re trying to justify the reversal by saying the 30th anniversary card isn’t legal in tournaments.
The situation surrounding the 30th Anniversary Edition is causing further frustration for players.
Logan Plant is a freelance writer for IGN covering video game and entertainment news. He has over 6 years of experience in the games industry and has bylines for IGN, Nintendo Wire, Switch Player Magazine and Lifewire. Find him on Twitter @LoganJPlant.
